British buff-mag Car is claiming Volkswagen is considering production of the radical, tandem seat, super-mileage VW 1-liter car for the 2010 model year. The car was originally powered by a one-cylinder, one-liter engine, but speculation places a two-cylinder, mild-hybrid turbodiesel under the bonnet of this carbon fiber fuel-sipper. On top of that, the power would be transmitted to the wheels via a motorcycle-style sequential transmission (which we've always though would be cool). While safety equipment and other flim-flam would likely push the curb weight past the original 660 pounds, it would still be the final word on the issue of lightness.

If one where to go out on a limb, news like this bolsters the talk of a VW/KTM partnership to produce the car using KTM's expertise in low production numbers and carbon fiber fabrication. We'll have to see if the rumors of this radical, top secret project have any weight to them, but a jet-canopied, carbon fiber, hypermileage rule breaker would certainly spice up the pending 2010 mileage wars. [Car via WCF]